Using the effective interest method of computing interest


Question - On January 2, 2013, a calendar-year corporation sold 8% bonds with a face value of $300,000. The bonds mature in five years, and interest is paid semi-annually on June 30 and December 31. The bonds were sold for $276,800 to yield 10%. Using the effective interest method of computing interest, how much should be charged to interest expense in 2013?

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Accounting Basics: Using the effective interest method of computing interest
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